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1 1 (January 21, 2021)

handle is hein.crs/govebph0001 and id is 1 raw text is: Congressional Research Service Maianii~Inforrning the legislative debate since 1914 Updated January 21, 2021 U.S. Trade and Development Agency (TDA) The U.S. Trade and Development Agency (TDA) is an independent U.S. government export promotion and foreign assistance agency. TDA aims to support U.S. jobs by linking U.S. firms to export opportunities for development projects in low- and middle-income countries by funding pre-export assistance. TDA-related issues for Congress may include the economic justifications for its mandate, and its role in supporting U.S. exports, relationship to other U.S. agencies, and intersection with broader U.S. policy goals and priorities. Background TDA is authorized permanently under the Foreign Assistance Act of 1961 (FAA), as amended (22 U.S.C. §2421), and operates under the Secretary of State's policy guidance. In 1992, Congress established TDA as an independent agency (P.L. 102-549), but its predecessor dates to the 1980s. The TDA Director is appointed by the President, by and with the Senate's advice and consent. Programs TDA provides grants to foreign project sponsors (public or private entities that can make decisions and implement projects), who select U.S. firms (primarily smaller firms) to perform TDA-funded project preparation activities. TDA activities include: Feasibility studies for infrastructure development projects to assist in securing financing and achieving implementation. Assessments may include technical, financial, legal, environmental, and other aspects of infrastructure development. In some cases, pilot projects may be funded to demonstrate U.S. sellers' goods, services, and technologies in the foreign buyer's setting, for testing and scaling up in order to secure project funding. Technical assistance to enhance the business environment for U.S. exports, which may include support for legal and regulatory reform, the establishment of industry standards, and infrastructure- planning activities in foreign markets. Training programs for foreign decision makers on technology, regulatory requirements, or other areas. Reverse trade missions to foster commercial ties by bringing foreign delegations to the United States to meet with U.S. firms and to observe the design, manufacture, and operation of U.S. goods and services. Conferences and workshops that connect U.S. firms with foreign project sponsors. TDA participates in the Trade Promotion Coordination Committee (TPCC), an interagency body that coordinates U.S. government export promotion efforts. Some projects that use TDA-funded services use financing from the Export-Import Bank (Ex-Im Bank) for exporting. For example, in 2018, TDA provided a grant to Ghana's Ministry of Energy for a feasibility study to expand energy access through solar-based, independent minigrid energy systems, with the aim of using Ex-Im Bank financing to implement the project. TDA also collaborates with other agencies, such as the U.S. Agency for International Development (USAID), on Administration initiatives. TDA support may help U.S. firms win export bids over foreign competition. For instance, in FY2020, when a telecommunications services provider in the Philippines was considering whether to integrate technology from U.S.- based Cisco in its 5G rollout efforts for a network that had relied primarily on Chinese-government supported suppliers, TDA sought to level the playing field by offering a training program to boost the project implementation capacity of the company's technical and managerial staff; the company subsequently selected Cisco as a supplier. Requirements The FAA directs TDA to promote U.S. private sector participation in developing and middle-income countries and to give special emphasis to economic sectors with notable U.S. export potential, such as energy, transportation, telecommunications, and the environment. The FAA also instructs TDA to, as much as possible, require firms and other entities to share the costs of TDA- funded project planning and to reimburse TDA for its expenditures if project implementation is successful. Funding President Trump's FY2021 budget requested funding to implement an orderly closeout of TDA; the Trump Administration contended that the private sector is better suited to carry out TDA's mission, and that other federal agencies can continue to support U.S. exports, U.S. businesses overseas, and international infrastructure development. Congress did not implement the proposal, instead funding TDA's continued operations in FY2021. Congress similarly did not implement previous requests to eliminate TDA in each of FY2018-FY2020 (see Table 1). Table I. TDA Funding ($ millions) and Employment FY17 FY18 FY19 FY20a FY21 Funding $75 $79.5 $79.5 $79.5 $79.5 FTEsb 57 48 62 65c 65c Source: CRS, based on appropriations laws and budget documents. Notes: (a) Requested. (b) FTEs: Full-time equivalents. (c) Estimated. ittps://crsreports.congress.g(

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